Google could face record fine from EU in Android case - report

Google could face a record fine from the European Union in a competition case over its Android mobile system, according to reports on Tuesday.

The EU executive arm, the European Commission, has been investigating a formal complaint against the tech giant lodged in April that accuses Google of setting out contacts with Android phone manufacturers that require them to accept some of the company’s services to licence the Play app store for free.

Google argued that the contracts help manufacturers compete against Apple and ensures the Android software remains free.

But the European Commission was set to fine the US tech giant on Wednesday, Bloomberg reported, with the financial penalty to exceed last year’s record €2.4bn fine for Google’s shopping-search investigation. EU rules say Google can be charged up to 10% of parent company Alphabet's annual revenue, which was $110.9bn in 2017.

The fine could also be followed by an order to free manufacturers from restrictions over which apps to install on Android phones.

Margrethe Vestager , the EC commissioner in charge of antitrust matters, is expected to say on Wednesday that Google abused its dominant position in the market and go ahead with the fine.